Occupy Main Street And The Kenosha Kid

4chan meme pays respects to Kyle Rittenhouse, the 17 year old volunteer who shot three felons in Kenosha, and the late Chadwick Boseman, who played the eponymous lead role in the movie Black Panther. In our post last week (“Kenosha Chaos And The NPC Economy“) we mentioned our Twitter correspondent Second City Bureaucrat’s excellent description of the violence wreaking American cities this summer: “Occupy Main Street”. 

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Q2 2020 hedge fund letters, conferences and more

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Occupy Main Street Meets Resistance

Unlike Occupy Wall Street, which (impotently, as it turned out) targeted America's largest banks,

Occupy Main Street has destroyed American small businesses.

Occupy Main Street ran into resistance in Kenosha last Thursday, in the person of Kyle Rittenhouse, who was apparently attacked by rioters while defending local businesses.

Rioters Not Sending Their Best

In an amazing coincidence, each of the rioters who attacked Rittenhouse, was a criminal. Joseph Rosenbaum, was a convicted sex offender,

Screen capture via Bail Bonds HQ

Anthony M. Huber had convictions for "strangulation and suffocation" and "false imprisonment".

The third rioter shot by Rittenhouse, Gaige P. Grosskreutz,has an arrest record for felony burglary. Unlike the other two, Grosskruetz survived. Rittenhouse hit Grosskruetz in his arm as Grosskruetz was apparently about to shoot him, as you can see in the video embedded in the tweet below.

Trump Gets Asked About The Kenosha Kid

In his press conference on Monday, a reporter asked President Trump about his supporters firing paint balls in Portland on Saturday. Trump responded by noting that one of his supporters was shot and killed in Portland that night. Next, another reporter asked Trump if he would condemn Kyle Rittenhouse. Trump declined to condemn him, pointing out that Rittenhouse appeared to have acted in self defense.

Kenosha As A Pivot Point

Kenosha, in particular the actions of Kyle Rittenhouse, appears to have been a pivot point in Occupy Main Street. The media and Biden supporters seem to have gone from downplaying the riots ("mostly peaceful protests") to lamenting that the rioters are helping Trump. Joe Biden gave a speech on Monday intimating that the rioting will get worse if Trump wins reelection. The latest national poll on Monday, Emerson's survey of likely voters, showed Biden's lead shrinking to 2 points, which was within the poll's 2.4% margin of error. Perhaps Democratic governors and mayors will attempt to rein in the rioters now. We'll see.

Investing During Occupy Main Street

In my previous post, I described my system's approach to investing during the chaos:

COVID lockdowns, riots, and looting are wrecking business districts while Americans shoot each other in the streets. How should you incorporate that into your investing framework? Portfolio Armor doesn't incorporate it at all, at least not directly. Instead, we look for names that have been going up, and that options market sentiment suggests have more room to run over the next six months.

We use our analysis of total returns and options market sentiment to select our top ten names each trading day.

And offered an example of the top names the system selected a month previously:

A month ago, these were our top ten names, as we shared in a post at the time (An Inauspicious Signal).

Top names occupy main street

Our top names as of Monday, July 27th.

Here I'd like to offer a quick update and a clarification. First, the clarification.

The "Armor" Is The Hedging

A reader of last week's post wondered where the "armor" was in buying stocks like Tesla in late July. By itself, there was no armor in that; the armor was in the hedging. I demonstrated a way of hedging that stock using our iPhone app last month.

Our Top Names Update Daily

Of the top ten names I posted here on July 27th, only four were on our top ten as of August 31st. Here's how the top names from July 27th had performed as of August 31st.

Portfolio Armor occupy main street